Australia and European Union want trade deal signed, von der Leyen visits Canberra

(Patria) - European Commission President Ursula von der Leyen will meet with Australian Prime Minister Anthony Albanese in Canberra today, as both sides seek to reach a long-delayed free trade agreement after negotiations began in 2018, Reuters reported.

Efforts to revive the deal come amid Middle East conflicts and heightened global trade tensions, as the European Union seeks to strengthen its position relative to the United States and China, following an agreement reached with India in January.

Negotiations collapsed in 2023 mainly due to disagreements over European Union quotas for meat imports and the protection of the agricultural sector. But recent signals indicate renewed momentum, raising hopes that the agreement could be finalized during the visit.

"We look forward to welcoming President von der Leyen," Albanese told parliament yesterday, adding that a free trade agreement with the European Union would further strengthen the Australian economy and increase jobs.

"I am sure it will be a great success," Albanese said.

Von der Leyen will address parliament today.

This month, Trade Minister Don Farrell stated he was confident an agreement could be reached in the national interest, and EU Trade Chief Maroš Šefčovič said talks were moving in the right direction.

Australia wants larger quotas for meat exports, and the EU wants lower tariffs on manufactured goods, especially cars, and better access to Australia's key minerals to reduce dependence on China.
Australian media report that the agreement would abolish the current five percent import tariff on European cars, potentially lowering prices for BMW and Mercedes offerings in Australia.

Trade between the two countries is significant, with total goods trade of 47.2 billion euros in 2025 and a surplus of 26.5 billion euros for the European Union.

Trade in services amounted to 38.1 billion euros in 2023, with a surplus of 17.9 billion euros also in favor of the European Union.